Prestige Estates shares fall, snap 5-day winning streak on weak Q4 results

Prestige Estates slips as fourth-quarter earnings fall short

Shares of Prestige Estates Projects declined by 1.5 percent to Rs 1,478 per share on May 30, as investors reacted to a weaker-than-expected set of financial results for the fourth quarter of the financial year 2025 (Q4FY25). The earnings miss brought an end to the company’s five-day gaining streak.

Ahead of the results, the stock had rallied for five consecutive trading sessions, delivering a return of nearly 5 percent. Over the past one month, Prestige Estates shares have risen by 8 percent, outperforming the benchmark Nifty 50 index, which advanced by 2 percent during the same period.

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For Q4FY25, the company’s total revenue declined by 29 percent to Rs 1,528 crore compared to Rs 2,164 crore in the corresponding quarter of the previous year. On a sequential basis, revenue was down by 8 percent from Rs 1,654 crore reported in the third quarter.

Net profit for the quarter also registered a sharp drop of 82 percent to Rs 43 crore, compared to Rs 236 crore in the year-ago period. However, the figure marked a 35 percent improvement over the Rs 32 crore net profit posted in the third quarter of FY25.

Prestige Estates’ earnings before interest, taxes, depreciation and amortisation (EBITDA) declined by 35 percent year-on-year to Rs 541 crore from Rs 828 crore in Q4FY24. Sequentially, EBITDA dropped by 7 percent from Rs 583 crore reported in the third quarter.

The company’s EBITDA margin contracted by 285 basis points to 35.4 percent in Q4FY25, down from 38.25 percent in the corresponding quarter last year. However, the margin showed a marginal improvement of 16 basis points compared to 35.25 percent in the third quarter of the current fiscal.

In its earlier operational update, Prestige Estates had reported that new sales for FY25 fell by 19 percent to Rs 17,023.1 crore from the previous financial year. The decline was attributed to delayed project launches due to approval bottlenecks.

Sales volume also fell significantly, registering a 38 percent decline from the previous year to 12.58 million square feet. On the collections front, the company reported a 1 percent increase to Rs 12,084 crore. However, this figure fell short of its own full-year guidance of Rs 16,000 crore.

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